Annual Report of the Chair, Board of Governors And the General and Special Committees 2025
and first half of 2023. Labor cost, food & beverage, golf course seed & chemicals, aquatics chemicals, utilities and insurance rates all saw cost increases. 2. On the Services side our ability to hire additional staff was eased by the purchase of the apartment building. As I noted in last year’s report, this purchase marked the first time in over 25 years that ANCC added to its land portfolio. Our new apartment building for employee housing has been a tremendous success. We continue to transition into and out, for twelve-month stints, J-1 visa students, keeping us from having to hire outsourced labor for events at ANCC. Depending on the timing, this results in $12.00-$15.00 per month in dues saved because of acquiring the apartment building. 3. The minimum wage for Virginia has been mandated to reach $12.77/hr. statewide by 1 January 2026. Unfortunately, the Northern Virginia, Washington D.C., and immediate Maryland areas have become an outlier to that projected minimum wage glide slope. In our highly competitive employment environment, Northern Virginia employers have already raised the starting minimum wage levels being offered well beyond $15/hr. Audit: The auditing firm of PBMares, LLP concluded their audit of Army Navy Country Club as of 31 March 2025. In the opinion of the auditor, the financial statements present fairly, in all material respects, the financial position of Army Navy Country Club as of 31 March 2025, and the changes in its net assets and its cash flows for the year ended are in accordance with the accounting principles generally accepted in the United States of America. Budget Development: The Finance Committee fulfills its fiduciary responsibilities to proactively plan and invest in the future sustainment of the Club and its facilities. This committee developed the ANCC FY2026 budget incorporating the Chairman of the Board’s Fiscal Planning and Strategic Budget Guidance to: 1.) meet the Club’s mission; 2.) maintain the quality of both campuses by ensuring the Preventive Maintenance Program; 3.) develop opportunities to increase the utilization of the Fairfax campus; 4.) continue with considering golf course improvements at the Arlington campus; 5.) consider developing a plan to improve and or expand capacity and use of the Arlington Indoor and Outdoor Tennis and Pickleball facilities; and 6.) continue growth as a first-class facility in accordance with our documented mission. The FY2026 ANCC budget adopted the staffing assumptions required to maintain the facilities we have; facilitate the continued enhancement of our service operations, maintain a positive cash flow for “unknowns”, and manage risk. As with FY 2025, one of the more significant challenges and fiscal considerations addressed was the projected budget required to support the competitive wages and benefits we would need to align with our recruitment and facility and service staffing requirements. Along with a limited availability of Northern Virginia pool staff, competitive pay scale issues continue to contribute to some of the most difficult conditions impacting both golf courses and retention in Food and Beverage. We are making headway in our starting wages but conditions in the extremely competitive Northern Virginia labor market continue to be a challenge. This Committee noted these same issues in last year’s report to the Membership. The Finance Committee fiscal objectives for FY2026 were to increase flexibility in staff hiring; maintain a positive cash balance for “unknowns”; manage risk; maximize service commitment and opportunities; and build upon the successes of the FY2025 operations.
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